 Risk aversion continues in Asian market but there is no disastrous development. Chinese stocks are back from holiday, down -3%. That's just playing catch up to last week's broad based decline in other Asian markets. China's RRR cut on Sunday stabilized sentiments somewhat, without giving it any lift though. At the time of writing, Hong Kong HSI is down -0.85%, Singapore Strait Times is down -0.58%. Japanese Nikkei is on holiday. The forex markets are rather quiet. Australian and New Zealand Dollar trade mildly higher, paring last week's losses. Swiss Franc and Dollar and firm up slightly. Canadian Dollar, on the other hand, suffers fresh selling and is trading as the weakest one so far. As US and Canada markets will be on holiday today, activity could remain subdued. Technically, one development to note is EUR/AUD's retreat today which might hint on rejection by 1.6353 key near term resistance. A pull back in EUR/AUD could either be accompanied by renewed selling in EUR/USD through 1.1463 temporary low, or lift AUD/USD for recovery, or both. |
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